Whats up with all these mergers?

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In the last few weeks we have seen two of the biggest bank mergers in history. Today it was announced that Mercedes Benz is taking over Chrysler. We have been told to "Buy American" for years. As soon as The American business gets in good enough shape, they sell to Europeans. I am sure that these companies have some pretty smart boys working for them that know all about y2k. It's hard to believe that Chrysler is selling Benz a, "Pig in a Poke" Germans are not known for being stupid. Whats going on?

-- Bill Solorzano (notaclue@webtv.net), May 07, 1998


Bill , I believe that once again history is repeating itself. Shortly before the crash of Oct.1929 we witnessed a record amount of bank mergers. "Record Bank Mergers. 37 banks in Minnesota, South Dakota, North Dakota, and Montana merged recently." Sept. 1 1929 Milw. Journal. It's true check it out for yourself. The major players back then recognized the fundamental shift that was about to take place and positioned themselves accordingly. This next fundamental shift which is about to take place has the major players scrambling for positions of strength for when the dust clears from this one only the strong will survive.

-- Hugo Fitzduane (hugofitzduane@usa.net), May 11, 1998.


What you are saying is that the crash in 29 was not a surprise to a lot of people "In the know". Do you think that the mergers we are seeing now has less to do with y2k than with a natural cycle in the market coupled with the problems in Asia and Europe? I have been reading predictions for years that our bull market can not continue, but on and on it goes.

-- Bill Solorzano (notaclue@webtv.net), May 12, 1998.

Hi, In today's Des Moines Register there are 2 more large mergers. Monsanto (the chemical company that wants to control hybrid seed by making it sterile) with DeKalb (a very large seed company) and SBC and Ameritech - two large telecommunications companies.

My local electric company (IES)just finished a merger this month with 2 other utilities making it quite sizeable. Tell me that any of these companies have time to think of Y2K and complete these mergers.

-- Rebecca Kutcher (kutcher@pionet.net), May 12, 1998.

On Yahoo headlines today - Con Ed is buying Orange and Rockland utilites. Con Ed is already one of the largest utilities in the US.

-- Rebecca Kutcher (kutcher@pionet.net), May 12, 1998.

Baker Hughes just bought Western Atlas. Now my husband has been bought and sold twice in the last year. These are oil/gas related and I believe they need presence in Asia.

-- Laurane Nash (familyties@rttinc.com), May 12, 1998.

I live in the midwest. Our state, plus three other states recently merged their utility companies!

-- annie (anniegaff@mailexcite.com), May 13, 1998.

Bill, ultimately , the inevitable crash that is coming is a part of the natural business cycle. Regardless of the often-times unbelievably optimistic economic forecasts currently coming out of Washington, history will later prove that the prosperity of the 1980's -1990's {1982-1998;99} like the Coolidge prosperity of the roaring 20's was no exception to the natural economic forces shaping our economic destiny. When the defining shift in consumer confidence happens the major players will have long made their move. It is currently happening now indeed. An Arab/Israeli war , Indian/Pakistani war, an outbreak of terrorism with WMD , a Japanese liquidity crises or a darkhorse------Y2k crises, will eventuate this shift. One of these , or perhaps others, will quickly and painfully bring our vastly over-valued market down to its knees. This , in turn , will have a devastating effect on our overall economy. It will most likely result in a world-wide depression. As for the y2k crises I believe it will most definitively have an impact either thru a real or perceived threat to our economy. I say this because I am not totally convinced of the possible/probable events that may happen according to many such as the Yourdons, Yardeni , Gary North and others. My hat is off to the Yourdons for a concise, and well written book on the subject and Ed Yourdons rep is impressive. Nonetheless when the mainstream media really embraces this issue , and they will, it will be enough to scare the daylights out of the majority of people who also happen to be quite illiterate in terms of computer technolgy {Internet, web, etc etc.} Even if the y2k crises turns out to be a non-event the perceived threat will be enough to cause a panic. Hugo

-- Hugo Fitzduane (hugofitzduane@usa.net), May 13, 1998.


What natural business cycle? Business does not cycle in crash/boom style unless there is money poofed into existance via a fiat monetary system and then poofed out of existance. Large credit expansions can do the same thing, but on a vastly smaller scale. Anytime a country has legal tender laws, somebody, somewhere, is planning on doing some sheating.

Study what happened in France from say 1780-1830. Excellent examples of two different systems. During the Revolutionary government they had fiat money and economic disaster. During Napolean they had a gold monetary system (not gold backed). The collapse of Napolean did not upset business.

-- R. Watt (rkwatt@hotmail.com), May 14, 1998.

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